The bearish sentiment towards the Sterling reached new depths during trading on Monday following Boris Johnson’s abrupt decision to join the campaign to leave the European Union which consequently sent the EURGBP higher. This pair was already bullish as there were consistently higher highs and higher lows while prices traded above both the 20 and 50 SMA. With Sterling weakness potentially taking center stage until the referendum in June, the EURGBP may continue to follow a positive trajectory moving forward. From a technical standpoint, a decisive break above 0.7850 should invite a further incline towards 0.7900 and potentially higher.
This pair is in the process of turning bearish on the daily timeframe as prices have cut through both the 20 and 50 simple moving averages. Although the MACD still trades to the upside, a solid breakdown below 1.5250 should encourage a steep decline towards 1.4900. A bullish move back above 1.5600 signals bearish weakness and invalidates this daily bearish outlook.
The GBPCHF is heavily bearish on the daily timeframe and a breakdown below 1.4050 should encourage a further decline towards 1.3850. Prices are trading below the 20, 50 and 200 SMA while the MACD has also crossed deep into the downside. Once bears conquer the 1.4050 support, this may turn into a dynamic resistance which should aid the pending move lower. If prices manage to break back above the previous lower high of 1.4300 then this daily bearish setup will become invalidated.
The NZDJPY continues to follow a choppy negative trajectory as there have been consistently lower lows and lower highs. Prices trade below the 20 and 50 SMA while the MACD also digs into the downside. Previous support at 76.50 may become a dynamic resistance which should encourage a further decline towards 73.00.
This pair is heavily bearish on the daily timeframe as prices are trading below both the 20 and 50 SMA while the MACD has also crossed to the downside. A breakdown below 15.10 should encourage sellers to send prices towards 14.80.
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